OpenAI reportedly is making its first AI chip with TSMC and Broadcom

OpenAI is undoubtedly a winner in the current artificial intelligence boom — and now it’s reportedly developing its own chips to power its growth.

The ChatGPT maker is working with Taiwan Semiconductor Manufacturing Company (TSM+1.27%) and Broadcom (AVGO+4.20%) to make its own in-house AI chips as demand for infrastructure grows, Reuters reported, citing unnamed people familiar with the matter. It reportedly also is adding Advanced Micro Devices’s (AMD+3.93%) AI chips to diversify supply from Nvidia (NVDA+0.55%).

The company has reportedly considered ways to diversify its supply of chips and cut costs, including by raising capital for a network of chipmaking factories. But instead of the plan for foundries — which it has dropped for now — OpenAI is focusing on designing its own chips in-house, Reuters reported.

OpenAI’s work with Broadcom on its first in-house chips for AI inferencing has been going on for months, people told Reuters, adding that while demand is currently higher for AI training chips, analysts expect AI inferencing to eventually take the lead. Inferencing, which comes after training, is the process of a trained AI model making predictions from new data.

Two people told Reuters that OpenAI is still deciding between either developing or acquiring other features for its AI chip, and could find more chipmaking partners. OpenAI has been able to establish manufacturing capacity with TSMC through its partnership with Broadcom, Reuters reported. The Taiwanese chipmaker reportedly could have OpenAI’s first custom-designed chip by 2026, but that is not certain.

Neither OpenAI, TSMC, nor Broadcom immediately responded to a request for comment.

In September, OpenAI released a series of “reasoning” AI models that it said are “designed to spend more time thinking before they respond.” OpenAI completed a $6.6 billion funding round earlier this month, giving it a valuation of $157 billion.